1 March 2012
Electricity distribution is no longer the exclusive responsibility of the Federal Government as any state that desires to build independent electricity distribution networks within areas not currently served within each distribution franchise is free to do so.
But such venture would require a licence from the Nigerian Electricity Regulatory Commission (NERC) where there would be no delays.
To this effect, the National Council on Privatisation (NCP), chaired by Vice-President Namadi Sambo, has approved that 60 per cent of the shares of a distribution company be sold to core investors to allow state governments participate in the bidding consortia.
It, however, restricted the overall federal and state government shares in such companies to 49 per cent, insisting government would not play any role in the management of the privatised successor companies.